Jersey economy: Anxious times.

Jersey is another overseas British Territory that has made Offshore Banking and finance the engine for its growth and development.

While earlier it was agriculture, fishing and knitwork that sustained its economy, today, it is high finance that contributes nearly 50% of the territory’s GDP, apart from 60% of the Government’s tax accruals. Liberal laws relating to establishment of firms and low tax rates have attracted a host of Banks and financial services companies to establish their offices here. British nationals subject to high taxes at home have found it convenient to base themselves in Jersey to escape the tax rigors at home. Nearly 35000 firms, including Banks and financial services companies are said to be registered in Jersey. The proximity to U.K. and the E.U. markets, as also free access to them have played an important part in boosting the economic prospects of Jersey.

Agriculture continues to be an important economic activity, with vegetables and flowers attracting major buyers in the U.K. And of course, the world famous Jersey cow that has been cross-bred with local varieties in various parts of the world is a native of Jersey. Special mention may also be made of the Jersey Royal Potatoes and dairy products that are exported from Jersey, mainly to the U.K and the E.U. Tourism is another area that continues to grow, and contribute to the economy in increasing measure. The majority of the tourists are from Britain.

The Jersey administration is also encouraging light industry and has succeeded in developing a small but thriving electronics industry. However, Jersey has to import raw materials, foodstuffs, machinery and equipment, chemicals, etc.

Presently, there is a sense of anxiety among the denizens of the Island about their future, especially in terms of the current global economic doom.